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#OraVADForumRIXOSLIBERTAS – No pswd

Confidential – Oracle Internal/Restricted/Highly RestrictedCopyright © 2019, Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, timing, and pricing of any features or functionality described for Oracle’s products may change and remains at the sole discretion of Oracle Corporation.

#OraVADForum

Driving Commercial Success

Paul ThompsonCommercial Senior Director, Alliances & Channels, Oracle EMEA@PaulTho30121957

RIXOSLIBERTAS – No pswdConfidential – Oracle Internal & VAD Only

418/06/2019 Confidential – Oracle Internal/Restricted/Highly RestrictedCopyright © 2019, Oracle and/or its affiliates. All rights reserved. |



#OraVADForumRIXOSLIBERTAS – No pswd



Confidential – Oracle Internal & VAD Only

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Program Agenda

Product update

Commercials update

Growing into the Oracle Cloud

The value of VADs

Call to Action

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Program Agenda

Product update

Commercials update


The value of VADs

Call to Action

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#OraVADForum

• Universal Credits

• Government SKUs

• Cloud @ Customer

Product update




• Government SKUs


Product update#OraVADForum



#OraVADForum

Universal Credits - Flexible Consumption Choices

Pay As You Go (PAYG)Universal Credits

Monthly Flex

• No upfront commitment• Pay in arrears based on usage• Transacted directly with Oracle

(except for CMP pilot)

• 1 year minimum term• Agreed to monthly spend• $1k / month min commitment

• PaaS savings vs PAYG start at 33%• Additional discounts based on size of

deal >$5k / month and term of deal • Overage at the same Net burn rate as

the Monthly Flex, invoiced directly to customer per CSA

Consumption Choices

• List Price• Built for land and expand• Best when usage is uncertain• Elastic payments based on usage



#OraVADForum

Universal Credits are ‘future proof’

• Network Cloud Services

– Notifications

– Monitoring

– Health Checks

– DNS Traffic Management

– Web Application Firewall

• Data Management

– Restructuring of certain Database Cloud Services

• Security and Identity Management

– Restructured Indentity Cloud Service and addition of BYOL version

– Key Management

• Storage

– Streaming Storage

• Compute

– High Performance Computing – X7

New Cloud Services since last year




• Government SKUs





#OraVADForum

The introduction of Universal Credits Model in late 2017 created a number of challenges for some Public Sector customers:

• Non-Defined Bill of Materials:

- If a product is named in a tender response, then that must be the product contracted for, e.g. Database Cloud Service, difficulty if the purchased product becomes a ‘Universal Credits’ and customer has access to a much broader set of services.

• Overage:

- Some entities only permitted to pay the exact amount contracted for, with great difficulty in paying additional fees in the case of over consumption.

- Invoiced directly to the signer of the CSA and not via the Channel.

• Use-or-Lose:

- In purchasing a “credit”, forfeiture of unused funds was problematic.

These are not insurmountable issues for some Public Sector entities, so the Universal Credit model should always be presented as our primary commercial option.

Public Sector Challenges with Universal Credits

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#OraVADForum

Government services are a hybrid between non-metered services and Universal Credits:- Customers can now order a specific set of services to create a defined bill of materials

- Services are purchased on the basis of a “fixed quantity” e.g. OCPU Hours/Month or GB’s/Month

- Service usage across each month is monitored to asses customer consumption against the fixed quantity purchased.

- Customers have the flexibility to exceed their purchased quantity should they have bursting, peak, or seasonal requirements (i.e. there is still the possibility to incur overage fees).

- As a default “hard limits” will be automatically activated on the customers tenancy to limit the possibility of overage. (Hard limits prevent the creation of any new instances but will not prevent operation of any instances already running).

- Customers can create instances and consume services in any shape/pattern required e.g. all OCPU hours could be utilised in the first two week of the month and nothing for the rest of the month.

- No ability to roll-over purchased hours/GB’s from month to month

Introducing Government Tech Cloud Services

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#OraVADForum

• Government SKU’s are not “new” services, rather a commercial construct so almost every PaaS & IaaS service has an equivalent Government SKU

Some exceptions:

- Database & Java Cloud Services Standard Edition (can sell Enterprise Edition and discount to SE price – approval required).

• Government SKU’s can be provisioned in any of our commercial data centers or in the UK Gov specific cages for UK Public Sector customers.

- Paas & IaaS Datacenter Availability (external)

What Government SKUs are available?

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https://cloud.oracle.com/data-regions



• Government SKUs





#OraVADForum

IaaS component (OCC control

plain andExa

components)

PaaS component –OCPUs only

(UCM –coordinate start date)

ExaCC yesterdayand today

IaaS component (OCC control

plain and compute and

storage)

PaaS component –

Cloud Services

(UCM –coordinate start date)

OCC yesterdayand existing

installed base

IaaS –Compute and

storage

Run on-premise

licenses –OVM

templates

PCC = PCA @ C

IaaS and PaaS Cloud @ Customer


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Program Agenda

Product update

Commercials update


The value of VADs

Call to Action5



#OraVADForum

• Transaction models

• Pricing

Commercial update



#OraVADForum


• Pricing

Commercial update


2018/06/2019 Confidential – Oracle Internal/Restricted/Highly RestrictedCopyright © 2019, Oracle and/or its affiliates. All rights reserved. |#OraVADForum

Recap: Partner Transaction types

« Resell » « Sell to »



OMA (Schedule H, P or C) or OLSA or MST or CSA

Partner’s Customer contract

VADA + HWA or CSDA + relevant

PSADD / PSS for PS End Users

MDA + FUDA or CSDA + relevant


« Resell » – Typical VAD (2 tier)

End User

Order document with transaction-specific T’s and C’s

Resell Discount


Customer Discount

Partner Pays VAD End User Pays Partner

License or Service and Support Delivery

VAD Pays Oracle


VAD Discount

VADwith Resell Rights

VAR

Overage




Partner’s Customer contract

VADA + HWA or CSDA + relevant


MDA + FUDA or CSDA + relevant


« Resell » – Public Sector Addendum

Public SectorEnd User


Resell Discount


Customer Discount

Partner Pays VAD End User Pays Partner


VAD Pays Oracle


VAD Discount

VADwith Resell Rights

VAR

CSA or OMA T’s and C’s put on the Partner’s

letterhead w/Oracle as 3rd party beneficiary



Partner’s End User contract

MDA + FUDA or CSDA + PSADD /

PSS for PS EU

VAD’s “acting as a

Reseller” Partner contract

« Sell to » – Typical Hosting model where the VAD is supplying the Partner

End User

Order document withtransaction-specific T’s and C’s

Partner “acting as customer” Discount End User Pricing

Partner Pays VAD ”acting as a Reseller” End User Pays Partner



VAD ”acting as a VAR” Pays Oracle


Resale Discount

VAD “acting as

a Reseller”with Resell Rights


Partner “acting as

customer”



• It depends on what services the Partner is offering and how easily they can beisolated from the Oracle Cloud Services

– Partner embeds the Oracle Cloud in its own broader service portfolio

– Partner builds offerings upon the Oracle Cloud

• It depends on what experience the End User is looking for and willing to contract

– Separate Cloud Service procurement from Implementation & Operational services procurement

– Looking for a prime contractor

« Resell » or « Sell to » ?

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#OraVADForum


• Pricing

Commercial update



Resell discounting on Monthly Flex

Discount Schedule for PaaS and IaaS - Indirect

Universal Credit Model

Standard Indirect Discount

on End User Rate Card

Universal Credit

Monthly Flex Spend1 Year Term 2 Year Term 3 Year Term 4 Year Term

$1,000 - $4,999 0%

$5,000 - $9,999 5% 10% 15% 20%

$10,000 - $24,999 10% 15% 20% 25%

$25,000 - $49,999 15% 20% 25% 30%

$50,000 - $100,000 20% 25% 30% 35%

> $100,000 30% 35% 40% 45%

VAD / DVAR Resell - Universal Credit Model

* Note: End User Credit Value equals the total amount prior to

VAD / DVAR discount. For example: if End User Universal

Credits are $100K Monthly, VAD fee payable to Oracle is $85K

(15% discount) or the DVAR fee to Oracle is $90k (10%

discount).

Term

Length

VAD / DVAR

Total Discount

from End User

Credit Value *

Oracle PaaS /

BYOL and IaaS1 - 4 Year Term 15% / 10%

Burn rate discount Payment discount

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Presented to the end userMeans each dollar of consumption buys more cloud services

(These discounts are the direct « Sell to » standard discounts)

Provides channel margin opportunityUnique to resell model -> Not available in Direct transactions



Government SKUsPartner discounts

Discount Schedule for PaaS and IaaS - Indirect

Government SKUs

Standard Indirect Discount

Non-Metered Subscription Model

Annual Order Value

List1 Year Term 2 Year Term 3 Year Term 4 Year Term

$0 - $59,999 0%

$60,000 - $119,999 5% 10% 15% 20%

$120,000 - $299,999 10% 15% 20% 25%

$300,000 - $599,999 15% 20% 25% 30%

$600,000 - $1,200,000 20% 25% 30% 35%

> $1,200,000 30% 35% 40% 45%

These discounts are independent of the channel.



C@C Non-Metered infrastructure

Cf « Sell to » standard resell discounts:



The primarly route for Partner transactions is the Oracle Partner Store. What is the most commun2nd route you follow ?

A/ Off-line quoting by the Oracle Prime Sales Rep

B/ A mix of Off-line quoting by the Oracle Prime Rep and the Partner Transaction Center Cisco

C/ Off-line quoting by the Partner Transaction Center

D/ We only transact via the Oracle Partner Store on-line


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Program Agenda

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Commercials update


The value of VADs

Call to Action

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RIXOSLIBERTAS – No pswd

• Phasing

• Expansions

• Non-Metered Mid-Term Conversion to Universal Credits

• POC to PAYG to Monthly Flex

• Moving on-premise to Cloud




• Phasing

• Expansions





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UCM Phasing | Example• Some customers require more flexibility to shape the profile of their monthly commitment

• New projects may need to start small e.g. Development phase and grow along the contract period

• Customers define in advance the phased amounts and timing

0

20000

40000

60000

80000

100000

120000

Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12

Example Phasing Demand

$10K MRR $20K MRR $70K MRR $110K MRR

ARR $630KAverage MRR over entire year =$52.5K Standard Discount provided over contract = 20%

1 Year Term

$1,000 - $4,999 0%

$5,000 - $9,999 5%

$10,000 - $24,999 10%

$25,000 - $49,000 15%

$50,000 - $99,999 20%

$100,000+ 30%



• Phasing

• Expansions







Expansion | ExampleExpansion Term < Original Term:Initial transaction for 2 years with monthly credit = $5000, TCV = $120000In month 3, expansion for 1 year to increase monthly commit to $11000

Expansion discount is calculated based on the total credit value and the longer term (2 year contract)

$5K MRR15%

$11K MRR

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24 TCV

Onboarding 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 115000

Expansion 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000

Total Credit 5000 5000 5000 11000 11000 11000 11000 11000 11000 11000 11000 11000 11000 11000 11000 5000 5000 5000 5000 5000 5000 5000 5000 5000 192000

Discount 10% 15% 10%

5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000

6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000

0

2000

4000

6000

8000

10000

12000

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24

Onboarding Expansion

10%$5K MRR

10%

1 Year Term

$1,000 - $4,999 0%

$5,000 - $9,999 5%

$10,000 - $24,999 10%

$25,000 - $49,000 15%

$50,000 - $99,999 20%

$100,000+ 30%

2 Year Term

$1,000 - $4,999 0%

$5,000 - $9,999 10%

$10,000 - $24,999 15%

$25,000 - $49,000 20%

$50,000 - $99,999 25%

$100,000+ 35%



• Phasing

• Expansions







Mid-Term Conversion (MTC) | Example

$50k $70k

$120k net to Oracle

Minimum 4 months

= $70k / (100% – Partner Resell Credit %)UC contract value over remaining term

Existing Non-Metered

Subscription

NewUniversal Credit

Subscription

MTC associated to legacy indirect contracts (through VAD + Partner) critical elements:

1. Respect Still-to-be-paid OMM Rebates on the Non-metered contract when converting to Universal Credits

2. MTC contract impacts legacy contracts that VAD established with VAR, and VAR established with Customer -> Requires management of the flow down of the conversion contract T’s and C’s

3. Collaborative efforts of Oracle Sales, VAD and Partner to collate, prepare, articulate and negotiate and effectively “sell” the upgrade and complete MTC in order to assure end customer advocacy

Dollar for dollar conversion

OD defined for conversion at theanniversary date of a given month

e.g. 12th of the next monthCo-Term

Start datee.g. 12th

of the month



• Phasing

• Expansions








Pilot to Production

➢ Organize the pilot directly with Oracle, eithera. to the end user, orb. to the Partner on behalf of the specified end user

➢ When it is time to move to Production…– Establish what the ‘go forward’ transaction model will be: Resell or Dedicated hosting– If necessary rectify who’s CSA is being referenced…

• Dedicated hosting, and if the pilot option was «a», then first assign the pilot environment to the Partner on behalf of the specified end user

• Resell, and if the pilot option was «b», then first assign the pilot environment to the end user

– Next, quote and transact the Production environment (assuring the correct choice of channel in Oracle’s systems), and before initiating any provisioning have Cloud Operations / Product Management move the Pilot environment under the transaction

– Please reach out to the Partner Transaction Center ([email protected]), this cannot be transacted simply via Oracle Partner Store

➢ Attention not to incorrectly transact and create a new Environment


mailto:[email protected]


PAYG to Monthly Flex conversions

➢ Customer’s first commercial transaction is PAYG➢ Request the offline creation of an update operation type to a Monthly Flex:

– Reach out to the Partner Transaction Center ([email protected]), this cannot be transacted via Oracle Partner Store and Quoting must be done offline

– Oracle quoting:

• Create an Expansion opportunity and create the Monthly Flex quote

• If there is a change in channel at the same time, use the workaround “PAYG UCM Conversion to Monthly Flex UCM - Sales Channel Change”, which requires a New Subscription opportunity

– Oracle Cloud Deal Management: Requires a small manual workaround on the OD– Issue: The OD will co-term the end date of the 1 year PAYG subscription

• To workaround this the Cloud Deal Management team manually adjusts the Monthly Flex end date based on the MSP commitment period

➢ Attention not to incorrectly transact and create a new Environment

Customer wants to start as PAYG and at future date switch to Monthly Flex:


mailto:[email protected]


• Phasing

• Expansions







Technology Licenses:

• BYOL to PaaS within the Universal Credits Model (Universal Credits Model – PaaS and IaaS)

• ULA to Cloud (Universal Credits Model – PaaS and IaaS) – double advantage:

– Re-purpose Support payment

– Use ULA to meet BYOL license requirements

… and for Applications Licenses: Customer to Cloud (SaaS)

Moving on-premise to Cloud


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Program Agenda

Product update

Commercials update


The value of VADs

Call to Action

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SELL

INNOVATE

IMPLEMENT

New Go To Market Framework

ENGAGE WITH SOLUTION PARTNERS

They drive consumption and renewal

ROUTE THE COVERAGE

PARTNERS VIA VADS

For strong focus on Mid-Market

INVEST IN IDENTIFIED TOP SIs

They drive large industry innovative and

Transformational deals

MARKET COVERAGE

SOLUTION FOCUS

SAAS

IAAS&

PAASSYSTEMS

DIGITALTRANSFORMATION



Value of Working with Oracle EMEA VADs

EMEA Partner communicationsJob title department: Administration / Finance / Management / Marketing / Operations / Sales –20k contacts in EMEA

E-blast Message Date

#1 Overview of value of the VAD 16 October 2018

#2 Marketing support from VADs 13 November 2018

#3 Transaction booking excellence 11 December 2018

#4 Financing flexibility and credit 15 January 2019

#5 VADs understand local requirements

13 February 2019

#6 Wrap-up communication 13 March 2019


https://go.oracle.com/LP=79117?elqCampaignId=196264&src1=:ow:lp:sh:em::LPD&intcmp=ACMK190110P00021:ow:lp:sh:em::LPD

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Program Agenda

Product update

Commercials update


The value of VADs

Call to Action

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• Master Universal Credits commercial model• Unique SKU that gives access to the breadth and depth of

Oracle IaaS and PaaS

• PAYG and Monthly Flex contractual models

• Land and Expand

• Help your Partners Choose the appropriate transaction model• « Resell » or « Sell to » depending on their offering and the

desired customer experience

• Promote your VAD business development and transactional support to the local Oracle Partners

Call to Action





#OraVADForum

Thank you


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